July 2017

The national MLS® Home Price Index (MLS® HPI) operations group underwent an annual review of the model in June. 

This led to the following changes:

  • Neighbourhoods where home sales over the past three years totaled 12 or less have been removed from the model. Neighbourhoods where sales have increased to 20 or more over the past three years have been added. Historical MLS® HPI data has been recalculated to reflect these changes.
  • The benchmark property descriptions have also been updated to reflect current buying trends. 

 

Similar to how the Consumer Price Index represents the cost of household goods and reflects inflationary changes, the MLS® HPI benchmark prices represent the value of a ‘typical’ property within a market.

The MLS® HPI creates a composite description for every neighbourhood and property type based on MLS® sales data for that specific area.

What people typically purchase can change over time due to changes in affordability and buyer preferences. Therefore, it’s necessary for the descriptions for this, or any, index to be periodically updated.